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Previous: EATON VANCE MUTUAL FUNDS TRUST, 485BPOS, EX-99.(O)(3), 2000-10-27 |
Next: PRUDENTIAL MUNICIPAL SERIES FUND, NSAR-BT, 2000-10-27 |
SEMI-ANNUAL REPORT
Dear Investor:
Enclosed is the Semi-Annual Report to Shareholders for Federated High Yield Trust. The report covers the six-month period from March 1, 2000 through August 31, 2000 and includes an investment review by the fund's portfolio manager, followed by a complete list of portfolio holdings and the financial statements.
This mutual fund is managed to pursue opportunities available in the lower-grade corporate bond market.1 At the end of the reporting period, its well-diversified portfolio included high yield bonds issued by companies that span the business and industrial spectrum. Each holding is the result of an intensive research process.
During the reporting period, the fund paid dividends of $0.422 per share and produced a total return of (0.02%) that was impacted by a net asset value decline of $0.43 per share.2 The fund's net assets totaled $681.5 million on the last day of the reporting period.
Thank you for participating in Federated High Yield Trust. As always, we welcome your questions and comments.
Sincerely,
J. Christopher Donahue
J. Christopher Donahue
President
October 15, 2000
1 Lower rated bonds involve a higher degree of risk than investment grade bonds in return for higher yield potential.
2 Past performance is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost.
High yield bonds generated lackluster absolute returns and unattractive relative returns for the six months ended August 31, 2000. For the reporting period, the Lehman Brothers High Yield Bond Index returned 0.46%, while the Lehman Brothers Aggregate Bond Index, a measure of high quality bond performance, returned 5.52%.1 Credit quality issues were the main reason for the underperformance of the high yield market. Default rates, which are running between 5% and 6% on an annualized basis in 2000, remain well above the level experienced through much of the 1990s. The domestic economy is showing signs of slowing under the weight of Fed interest rate increases and high energy prices. These credit quality concerns are illustrated by a widening of the yield spread between the Credit Suisse First Boston High Yield Index2 and comparable U.S. Treasury securities. The spread increased from 608 basis points on February 29, 2000 to 773 basis points on August 31, 2000. Also, shareholder redemptions out of high yield mutual funds has put pressure on the secondary market trading levels for high yield securities.
The fund, which produced a total return of (0.02%) for the six-month period ended August 31, 2000, performed in line with the Lehman Brothers High Yield Index while substantially outperforming the Lipper High Current Yield Fund Average,3 which returned (1.28%). The fund benefited from strong security selection during the period as positions in Revlon, Allied Waste, Fairchild Corp., and Albecca substantially outperformed the overall market. Also, the fund benefited from merger and acquisition activity involving issuers in the portfolio. For example, Verio, Dialog, US Xchange and International Home Foods were acquired by stronger credits during the period while R&B Falcon, Intermedia Communications and Voicestream announced plans to be acquired. The fund was negatively impacted by its overweight in BB-rated securities and overweight in B-rated securities. Reflecting the quality bias in the period, BB-rated securities returned 4.55% while B-rated securities returned (0.50%). The fund was also negatively impacted by its underweight in the energy sector, which outperformed given high oil and gas prices. Specific holdings in Regal Cinemas, Dade International, Hermes, Viatel and Agrilink underperformed the market on disappointing financial performance while Clark Equipment, Dyersburg, Glenoit and Genesis Health defaulted on their obligations.
1 Lehman Brothers High Yield Bond Index is an unmanaged index that includes all fixed income securities having a maximum quality rating of Ba1, a minimum amount outstanding of $100 million and at least one year to maturity. Lehman Brothers Aggregate Bond Index is an unmanaged index composed of securities from the Lehman Brothers Government/Corporate Bond Index, Mortgage-Backed Securities Index and the Asset-Backed Securities Index. Total return comprises price appreciation/depreciation and income as percentage of the original investment. Indexes are rebalanced monthly by market capitalization. Investments cannot be made in an index.
2 Credit Suisse First Boston High Yield Index serves as a benchmark to evaluate the performance of low-quality bonds. Low quality is defined as those bonds in the range from BBB to CCC and defaults. Morningstar receives and publishes this figure as a monthly total return. Indexes are unmanaged and investments cannot be made in an index.
3 Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper Analytical Services, Inc. as falling into the respective categories indicated. These figures do not reflect sales charges.
We expect the credit environment to continue to be challenging with default rates remaining in the 5% to 6% range into 2001. However, much of the performance impact of higher default rates is priced into the market given wide yield spreads and a substantial percentage of the market trading at quasi distressed levels. This creates attractive total return opportunities as many of these issuers will continue to service their debt. The primary risk is that the economy moves into recession given the Fed's interest rate increases and the substantial increase in energy prices.
From a portfolio perspective, the telecommunication sector continues to be the largest industry exposure in the fund although we are roughly market weight in the sector. We believe telecommunication companies that can effectively execute their business plans will deliver attractive returns while issuers that do not execute will be dealt with harshly by the market. We also believe that merger and acquisition activity in the telecommunication space will remain high benefiting high yield issuers. We believe opportunities exist in strong BB-rated issuers trading cheap to historical levels, issuers trading at discounts to par where credit fundamentals are intact and new issues, which are priced to sell in a weak new issue market. We are seeking to capitalize in these areas while being always cognizant of the overall credit risk environment.
AUGUST 31, 2000 (UNAUDITED)
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
CORPORATE BONDS--90.6% |
|
|
|
|
|
|
|
Aerospace & Defense--0.4% |
|
|
|
|
$ |
2,125,000 |
|
Anteon Corp., Sr. Sub. Note, 12.00%, 5/15/2009 |
|
$ |
1,923,125 |
|
|
||||||
|
|
1,000,000 |
1, 2 |
Condor Systems, Inc., Sr. Sub. Note, 11.875%, 5/1/2009 |
|
|
655,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
2,578,125 |
|
|
||||||
|
|
|
|
Auto/Truck--0.6% |
|
|
|
|
|
2,425,000 |
|
HAD Parts System, Inc., Sr. Sub. Note, 12.00%, 8/1/2005 |
|
|
1,630,812 |
|
|
2,800,000 |
|
J.L. French Automotive Castings, Inc., Sr. Sub. Note, (Series B), 11.50%, 6/1/2009 |
|
|
2,408,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
4,038,812 |
|
|
||||||
|
|
|
|
Automotive--2.8% |
|
|
|
|
|
2,250,000 |
|
Accuride Corp., Sr. Sub. Note, (Series B), 9.25%, 2/1/2008 |
|
|
1,946,250 |
|
|
3,563,000 |
|
Aftermarket Technology Co., Sr. Sub. Note, 12.00%, 8/1/2004 |
|
|
3,527,370 |
|
|
5,000,000 |
|
American Axle & Manufacturing, Inc., Company Guarantee, 9.75%, 3/1/2009 |
|
|
4,925,000 |
|
|
5,000,000 |
|
Lear Corp., Company Guarantee, 8.11%, 5/15/2009 |
|
|
4,779,350 |
|
|
1,000,000 |
|
Lear Corp., Sub. Note, 9.50%, 7/15/2006 |
|
|
1,010,000 |
|
|
1,000,000 |
|
Motor Coach Industries International, Inc., Sr. Sub. Note, 11.25%, 5/1/2009 |
|
|
755,000 |
|
|
2,000,000 |
|
Oxford Automotive, Inc., Company Guarantee, 10.125%, 6/15/2007 |
|
|
1,810,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
18,752,970 |
|
|
||||||
|
|
|
|
Banking--1.0% |
|
|
|
|
|
7,150,000 |
|
GS Escrow Corp., Sr. Note, 7.125%, 8/1/2005 |
|
|
6,527,378 |
|
|
||||||
|
|
|
|
Beverage & Tobacco--0.1% |
|
|
|
|
|
700,000 |
|
National Wine & Spirits, Inc., Company Guarantee, 10.125%, 1/15/2009 |
|
|
682,500 |
|
|
||||||
|
|
|
|
Broadcast Radio & TV--5.0% |
|
|
|
|
|
2,750,000 |
3 |
ACME Television, LLC, Sr. Disc. Note, 0/10.875%, 9/30/2004 |
|
|
2,626,250 |
|
|
3,477,600 |
|
AMFM, Inc., Deb., 12.625%, 10/31/2006 |
|
|
4,138,344 |
|
|
3,850,000 |
3 |
Big City Radio, Inc., Company Guarantee, 0/11.25%, 3/15/2005 |
|
|
2,233,000 |
|
|
2,694,400 |
|
Capstar Broadcasting Partners, Inc., Bond, 12.00%, 7/1/2009 |
|
|
3,085,088 |
|
|
1,000,000 |
|
Capstar Broadcasting Partners, Inc., Sr. Sub. Note, 9.25%, 7/1/2007 |
|
|
1,035,000 |
|
|
3,600,000 |
|
Chancellor Media Corp., Sr. Sub. Note, 8.125%, 12/15/2007 |
|
|
3,654,000 |
|
|
3,925,000 |
|
Chancellor Media Corp., Sr. Sub. Note, 8.75%, 6/15/2007 |
|
|
3,983,875 |
|
|
8,425,000 |
3 |
Fox/Liberty Networks, LLC, Sr. Disc. Note, 0/9.75%, 8/15/2007 |
|
|
7,013,812 |
|
|
3,800,000 |
|
Orion Network Systems, Sr. Note, 11.25%, 1/15/2007 |
|
|
2,299,000 |
|
|
2,575,000 |
|
Sinclair Broadcast Group, Inc., Sr. Sub. Note, 8.75%, 12/15/2007 |
|
|
2,381,875 |
|
|
2,200,000 |
1, 2 |
XM Satellite Radio, Inc., Sr. Note, (Series 144A), 14.00%, 3/15/2010 |
|
|
1,727,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
34,177,244 |
|
|
||||||
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
CORPORATE BONDS--continued |
|
|
|
|
|
|
|
Building & Development--1.0% |
|
|
|
|
$ |
3,325,000 |
|
American Builders & Contractors Supply Co., Inc., Sr. Sub. Note, 10.625%, 5/15/2007 |
|
$ |
2,842,875 |
|
|
2,800,000 |
|
Formica Corp., Sr. Sub. Note, (Series B), 10.875%, 3/1/2009 |
|
|
1,638,000 |
|
|
1,275,000 |
|
Juno Lighting, Inc., Sr. Sub. Note, 11.875%, 7/1/2009 |
|
|
1,115,625 |
|
|
1,250,000 |
|
NCI Building System, Inc., Sr. Sub. Note, (Series B), 9.25%, 5/1/2009 |
|
|
1,206,250 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
6,802,750 |
|
|
||||||
|
|
|
|
Business Equipment & Services--1.8% |
|
|
|
|
|
3,300,000 |
|
Buhrmann US, Inc., Sr. Sub. Note, 12.25%, 11/1/2009 |
|
|
3,415,500 |
|
|
243,725 |
|
Electronic Retailing Systems International, Inc., Sr. Disc. Note, 10.00%, 8/1/2001 |
|
|
92,616 |
|
|
243,725 |
|
Electronic Retailing Systems International, Inc., Sr. Disc. Note, 8.00%, 8/1/2001 |
|
|
17,061 |
|
|
4,050,000 |
|
Fisher Scientific International, Inc., Sr. Sub. Note, 9.00%, 2/1/2008 |
|
|
3,817,125 |
|
|
4,225,000 |
|
Fisher Scientific International, Inc., Sr. Sub. Note, 9.00%, 2/1/2008 |
|
|
3,982,062 |
|
|
6,100,000 |
|
U.S. Office Products Co., Sr. Sub. Note, 9.75%, 6/15/2008 |
|
|
945,500 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
12,269,864 |
|
|
||||||
|
|
|
|
Cable Television--11.1% |
|
|
|
|
|
67,574 |
4 |
Australis Media Ltd., Sr. Disc. Note, 15.75%, 5/15/2003 |
|
|
1,014 |
|
|
3,950,000 |
4 |
Australis Media Ltd., Unit, 15.75%, 5/15/2003 |
|
|
59,250 |
|
|
2,000,000 |
|
CSC Holdings, Inc., Sr. Note, 7.875%, 12/15/2007 |
|
|
1,959,500 |
|
|
1,265,000 |
|
CSC Holdings, Inc., Sr. Sub. Deb., 9.875%, 2/15/2013 |
|
|
1,296,625 |
|
|
4,375,000 |
|
CSC Holdings, Inc., Sr. Sub. Note, 9.25%, 11/1/2005 |
|
|
4,429,687 |
|
|
1,500,000 |
|
Charter Communications Holdings Capital Corp., 10.00%, 4/1/2009 |
|
|
1,500,000 |
|
|
13,400,000 |
3 |
Charter Communications Holdings Capital Corp., Sr. Disc. Note, 0/9.92%, 4/1/2011 |
|
|
8,107,000 |
|
|
8,825,000 |
3 |
Diamond Cable Communications PLC, Sr. Disc. Note, 0/10.75%, 2/15/2007 |
|
|
6,839,375 |
|
|
4,300,000 |
|
Echostar DBS Corp., Sr. Note, 9.375%, 2/1/2009 |
|
|
4,278,500 |
|
|
6,400,000 |
3 |
International Cabletel, Inc., Sr. Defd. Cpn. Note, 0/11.50%, 2/1/2006 |
|
|
6,056,000 |
|
|
1,000,000 |
|
Lenfest Communications, Inc., Sr. Sub. Note, 10.50%, 6/15/2006 |
|
|
1,111,410 |
|
|
4,250,000 |
|
Lenfest Communications, Inc., Sr. Sub. Note, 8.25%, 2/15/2008 |
|
|
4,272,950 |
|
|
2,100,000 |
3 |
NTL, Inc., Sr. Disc. Note, 0/12.375%, 10/1/2008 |
|
|
1,359,750 |
|
|
975,000 |
3 |
NTL, Inc., Sr. Note, 0/9.75%, 4/1/2008 |
|
|
624,010 |
|
|
5,700,000 |
|
NTL, Inc., Sr. Note, 11.50%, 10/1/2008 |
|
|
5,842,500 |
|
|
3,300,000 |
|
Pegasus Media, Note, 12.50%, 7/1/2005 |
|
|
3,448,500 |
|
|
1,825,000 |
3 |
RCN Corp., Sr. Disc. Note, 0/11.125%, 10/15/2007 |
|
|
1,067,625 |
|
|
2,675,000 |
3 |
RCN Corp., Sr. Note, 0/11.00%, 7/1/2008 |
|
|
1,404,375 |
|
|
5,800,000 |
|
Rogers Cablesystems Ltd., Sr. Sub. GTD Note, 11.00%, 12/1/2015 |
|
|
6,409,000 |
|
|
3,000,000 |
3 |
TeleWest PLC, Sr. Disc. Note, 0/9.25%, 4/15/2009 |
|
|
1,680,000 |
|
|
1,150,000 |
|
TeleWest PLC, Sr. Note, 11.25%, 11/1/2008 |
|
|
1,155,750 |
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
CORPORATE BONDS--continued |
|
|
|
|
|
|
|
Cable Television--continued |
|
|
|
|
$ |
5,175,000 |
3 |
UIH Australia/Pacific, Sr. Disc. Note, 0/14.00%, 5/15/2006 |
|
$ |
4,838,625 |
|
|
8,000,000 |
3 |
United International Holdings, Inc., Sr. Secd. Disc. Note, 0/10.75%, 2/15/2008 |
|
|
5,640,000 |
|
|
2,000,000 |
|
United Pan-Europe Communications NV, Sr. Disc. Note, 12.50%, 8/1/2009 |
|
|
950,000 |
|
|
2,675,000 |
|
United Pan-Europe Communications NV, Sr. Disc. Note, 13.375%, 11/1/2009 |
|
|
1,300,719 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
75,632,165 |
|
|
||||||
|
|
|
|
Chemicals & Plastics--3.8% |
|
|
|
|
|
2,200,000 |
|
Foamex LP, Sr. Sub. Note, 13.50%, 8/15/2005 |
|
|
1,947,000 |
|
|
1,000,000 |
|
General Chemical Industrial Products, Inc., Sr. Sub. Note, 10.625%, 5/1/2009 |
|
|
855,000 |
|
|
1,000,000 |
|
Georgia Gulf Corp., Sr. Sub. Note, 10.375%, 11/1/2007 |
|
|
1,042,500 |
|
|
2,800,000 |
1, 2 |
Huntsman Corp., Sr. Sub. Note, 9.50%, 7/1/2007 |
|
|
2,450,000 |
|
|
3,000,000 |
|
Huntsman ICI Chemicals LLC, Sr. Sub. Note, 10.125%, 7/1/2009 |
|
|
3,060,000 |
|
|
8,625,000 |
|
Lyondell Chemical Co., Sr. Sub. Note, (Series B), 10.875%, 5/1/2009 |
|
|
8,840,625 |
|
|
5,200,000 |
|
Polymer Group, Inc., Sr. Sub. Note, 9.00%, 7/1/2007 |
|
|
4,212,000 |
|
|
2,525,000 |
3 |
Sterling Chemicals Holdings, Inc., Sr. Disc. Note, 0/13.50%, 8/15/2008 |
|
|
1,148,875 |
|
|
2,325,000 |
|
Texas Petrochemicals Corp., Sr. Sub. Note, 11.125%, 7/1/2006 |
|
|
2,011,125 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
25,567,125 |
|
|
||||||
|
|
|
|
Clothing & Textiles--1.1% |
|
|
|
|
|
3,125,000 |
|
Collins & Aikman Floorcoverings, Inc., Sr. Sub. Note, 10.00%, 1/15/2007 |
|
|
3,062,500 |
|
|
3,850,000 |
1, 4 |
Dyersburg Corp., Sr. Sub. Note, 9.75%, 9/1/2007 |
|
|
327,250 |
|
|
3,325,000 |
|
GFSI, Inc., Sr. Sub. Note, 9.625%, 3/1/2007 |
|
|
2,477,125 |
|
|
4,450,000 |
1, 4 |
Glenoit Corp., Sr. Sub. Note, 11.00%, 4/15/2007 |
|
|
645,250 |
|
|
1,100,000 |
|
Pillowtex Corp., Sr. Sub. Note, 10.00%, 11/15/2006 |
|
|
214,500 |
|
|
2,975,000 |
|
Pillowtex Corp., Sr. Sub. Note, 9.00%, 12/15/2007 |
|
|
580,125 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
7,306,750 |
|
|
||||||
|
|
|
|
Conglomerates--0.5% |
|
|
|
|
|
4,450,000 |
|
Eagle Picher Industries, Inc., Sr. Sub. Note, 9.375%, 3/1/2008 |
|
|
3,715,750 |
|
|
||||||
|
|
|
|
Consumer Products--3.8% |
|
|
|
|
|
3,000,000 |
|
Albecca, Inc., Company Guarantee, 10.75%, 8/15/2008 |
|
|
2,745,000 |
|
|
2,000,000 |
|
American Safety Razor Co., Sr. Note, 9.875%, 8/1/2005 |
|
|
1,930,000 |
|
|
2,850,000 |
|
Amscan Holdings, Inc., Sr. Sub. Note, 9.875%, 12/15/2007 |
|
|
2,322,750 |
|
|
2,925,000 |
|
Chattem, Inc., Sr. Sub. Note, 8.875%, 4/1/2008 |
|
|
2,526,322 |
|
|
850,000 |
|
Diamond Brands Operating Corp., Sr. Sub. Note, 10.125%, 4/15/2008 |
|
|
386,750 |
|
|
1,450,000 |
3 |
Diamond Brands, Inc., Sr. Disc. Deb., 0/12.875%, 4/15/2009 |
|
|
166,750 |
|
|
2,350,000 |
1, 2 |
Jostens, Inc., Unit, 12.75%, 5/1/2010 |
|
|
2,411,688 |
|
|
2,850,000 |
|
NBTY, Inc., Sr. Sub. Note, 8.625%, 9/15/2007 |
|
|
2,451,000 |
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
CORPORATE BONDS--continued |
|
|
|
|
|
|
|
Consumer Products--continued |
|
|
|
|
$ |
8,950,000 |
|
Revlon Consumer Products Corp., Sr. Sub. Note, 8.625%, 2/1/2008 |
|
$ |
4,788,250 |
|
|
175,000 |
1, 2 |
Scotts Co., Sr. Sub. Note, 8.625%, 1/15/2009 |
|
|
172,375 |
|
|
2,000,000 |
3 |
Sealy Mattress Co., Company Guarantee, 0/10.875%, 12/15/2007 |
|
|
1,500,000 |
|
|
1,250,000 |
|
Sealy Mattress Co., Sr. Sub. Note, 9.875%, 12/15/2007 |
|
|
1,218,750 |
|
|
1,575,000 |
|
True Temper Sports, Inc., Sr. Sub. Note, 10.875%, 12/1/2008 |
|
|
1,543,500 |
|
|
1,925,000 |
|
United Industries Corp., Sr. Sub. Note, 9.875%, 4/1/2009 |
|
|
924,000 |
|
|
1,000,000 |
|
Volume Services America, Inc., Sr. Sub. Note, 11.25%, 3/1/2009 |
|
|
920,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
26,007,135 |
|
|
||||||
|
|
|
|
Container & Glass Products--1.1% |
|
|
|
|
|
1,000,000 |
1, 2 |
Huntsman Packaging Corp., Unit, 13.00%, 6/1/2010 |
|
|
900,000 |
|
|
4,100,000 |
|
Owens-Illinois, Inc., Sr. Note, 7.35%, 5/15/2008 |
|
|
3,652,075 |
|
|
2,250,000 |
|
Russell Stanley Holdings, Inc., Sr. Sub. Note, 10.875%, 2/15/2009 |
|
|
1,068,750 |
|
|
1,600,000 |
1, 2 |
Tekni-Plex, Inc., Sr. Sub. Note, 12.75%, 6/15/2010 |
|
|
1,624,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
7,244,825 |
|
|
||||||
|
|
|
|
Ecological Services & Equipment--2.5% |
|
|
|
|
|
18,700,000 |
|
Allied Waste North America, Inc., Sr. Sub. Note, 10.00%, 8/1/2009 |
|
|
16,876,750 |
|
|
||||||
|
|
|
|
Electronics--1.9% |
|
|
|
|
|
2,325,000 |
1, 2 |
Exodus Communications, Inc., Sr. Note, 11.625%, 7/15/2010 |
|
|
2,371,500 |
|
|
1,675,000 |
|
Fairchild Semiconductor Corp., Sr. Sub. Note, 10.375%, 10/1/2007 |
|
|
1,733,625 |
|
|
1,175,000 |
1, 2 |
Flextronics International Ltd., Sr. Sub. Note, 9.875%, 7/1/2010 |
|
|
1,224,937 |
|
|
8,350,000 |
|
Telecommunications Techniques Co., LLC, Sr. Sub. Note, 9.75%, 5/15/2008 |
|
|
7,890,750 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
13,220,812 |
|
|
||||||
|
|
|
|
Farming & Agriculture--0.1% |
|
|
|
|
|
1,000,000 |
|
Royster-Clark, Inc., 1st Mtg. Note, 10.25%, 4/1/2009 |
|
|
785,000 |
|
|
||||||
|
|
|
|
Food & Drug Retailers--0.2% |
|
|
|
|
|
1,600,000 |
3 |
Del Monte Foods Co., Sr. Disc. Note, 0/12.50%, 12/15/2007 |
|
|
1,212,000 |
|
|
||||||
|
|
|
|
Food Products--2.0% |
|
|
|
|
|
6,500,000 |
|
Agrilink Foods, Inc., Sr. Sub. Note, 11.875%, 11/1/2008 |
|
|
5,005,000 |
|
|
3,625,000 |
|
Eagle Family Foods, Inc., Sr. Sub. Note, 8.75%, 1/15/2008 |
|
|
1,939,375 |
|
|
2,550,000 |
|
International Home Foods, Inc., Sr. Sub. Note, 10.375%, 11/1/2006 |
|
|
2,734,875 |
|
|
4,250,000 |
|
Triarc Consumer Products Group, LLC, Sr. Sub. Note, 10.25%, 2/15/2009 |
|
|
4,122,500 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
13,801,750 |
|
|
||||||
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
CORPORATE BONDS--continued |
|
|
|
|
|
|
|
Food Services--0.8% |
|
|
|
|
$ |
1,000,000 |
|
Advantica Restaurant Group, Sr. Note, 11.25%, 1/15/2008 |
|
$ |
675,000 |
|
|
600,000 |
|
CKE Restaurants, Inc., Sr. Sub. Note, 9.125%, 5/1/2009 |
|
|
387,000 |
|
|
3,925,000 |
|
Carrols Corp., Sr. Sub. Note, 9.50%, 12/1/2008 |
|
|
3,355,875 |
|
|
1,000,000 |
|
Domino's, Inc., Sr. Sub. Note, 10.375%, 1/15/2009 |
|
|
960,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
5,377,875 |
|
|
||||||
|
|
|
|
Forest Products--0.6% |
|
|
|
|
|
2,050,000 |
|
Stone Container Corp., Sr. Note, 11.50%, 10/1/2004 |
|
|
2,108,938 |
|
|
2,000,000 |
|
Stone Container Corp., Sr. Note, 12.58%, 8/1/2016 |
|
|
2,090,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
4,198,938 |
|
|
||||||
|
|
|
|
Health Care--4.6% |
|
|
|
|
|
5,000,000 |
|
CONMED Corp., Sr. Sub. Note, 9.00%, 3/15/2008 |
|
|
4,225,000 |
|
|
4,725,000 |
|
Dade International, Inc., Sr. Sub. Note, 11.125%, 5/1/2006 |
|
|
1,866,375 |
|
|
1,950,000 |
|
Everest Healthcare Services Corp., Sr. Sub. Note, 9.75%, 5/1/2008 |
|
|
1,764,750 |
|
|
2,225,000 |
4 |
Genesis Health Ventures, Inc., Sr. Sub. Note, 9.25%, 10/1/2006 |
|
|
211,375 |
|
|
700,000 |
4 |
Genesis Health Ventures, Inc., Sr. Sub. Note, 9.75%, 6/15/2005 |
|
|
66,500 |
|
|
1,000,000 |
4 |
Genesis Health Ventures, Inc., Sr. Sub. Note, 9.875%, 1/15/2009 |
|
|
105,000 |
|
|
1,800,000 |
|
Hanger Orthopedic Group, Inc., Sr. Sub. Note, 11.25%, 6/15/2009 |
|
|
1,584,000 |
|
|
1,750,000 |
|
Hudson Respiratory Care, Inc., Sr. Sub. Note, 9.125%, 4/15/2008 |
|
|
1,233,750 |
|
|
4,475,000 |
|
Kinetic Concepts, Inc., Company Guarantee, 9.625%, 11/1/2007 |
|
|
3,468,125 |
|
|
3,500,000 |
|
Tenet Healthcare Corp., Sr. Note, 7.625%, 6/1/2008 |
|
|
3,316,250 |
|
|
1,175,000 |
|
Tenet Healthcare Corp., Sr. Note, 8.00%, 1/15/2005 |
|
|
1,157,375 |
|
|
8,250,000 |
1, 2 |
Tenet Healthcare Corp., Sr. Note, 9.25%, 9/1/2010 |
|
|
8,600,625 |
|
|
3,650,000 |
|
Tenet Healthcare Corp., Sr. Sub. Note, 8.625%, 1/15/2007 |
|
|
3,613,500 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
31,212,625 |
|
|
||||||
|
|
|
|
Hotels, Motels, Inns & Casinos--2.6% |
|
|
|
|
|
1,100,000 |
|
Courtyard by Marriott II LP, Sr. Note, 10.75%, 2/1/2008 |
|
|
1,105,500 |
|
|
5,525,000 |
|
Florida Panthers Holdings, Inc., Company Guarantee, 9.875%, 4/15/2009 |
|
|
5,027,750 |
|
|
2,900,000 |
|
HMH Properties, Inc., Sr. Note, (Series A), 7.875%, 8/1/2005 |
|
|
2,769,500 |
|
|
4,625,000 |
|
HMH Properties, Inc., Sr. Note, (Series B), 7.875%, 8/1/2008 |
|
|
4,370,625 |
|
|
4,200,000 |
|
HMH Properties, Inc., Sr. Note, (Series C), 8.45%, 12/1/2008 |
|
|
4,074,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
17,347,375 |
|
|
||||||
|
|
|
|
Industrial Products & Equipment--4.3% |
|
|
|
|
|
500,000 |
1, 2 |
Actuant Corp., Sr. Sub. Note, 13.00%, 5/1/2009 |
|
|
512,500 |
|
|
2,250,000 |
|
Amphenol Corp., Sr. Sub. Note, 9.875%, 5/15/2007 |
|
|
2,283,750 |
|
|
1,650,000 |
|
Blount, Inc., Company Guarantee, 13.00%, 8/1/2009 |
|
|
1,699,500 |
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
CORPORATE BONDS--continued |
|
|
|
|
|
|
|
Industrial Products & Equipment--continued |
|
|
|
|
$ |
3,800,000 |
|
Cabot Safety Acquisition Corp., Sr. Sub. Note, 12.50%, 7/15/2005 |
|
$ |
3,895,000 |
|
|
4,325,000 |
|
Continental Global Group, Inc., Sr. Note, 11.00%, 4/1/2007 |
|
|
1,492,125 |
|
|
2,300,000 |
|
Euramax International PLC, Sr. Sub. Note, 11.25%, 10/1/2006 |
|
|
2,173,500 |
|
|
1,400,000 |
|
ISG Resources, Inc., Sr. Sub. Note, 10.00%, 4/15/2008 |
|
|
1,190,000 |
|
|
1,925,000 |
|
International Utility Structures, Inc., Sr. Sub. Note, 10.75%, 2/1/2008 |
|
|
1,395,625 |
|
|
4,600,000 |
|
MMI Products, Inc., Sr. Sub. Note, 11.25%, 4/15/2007 |
|
|
4,577,000 |
|
|
2,200,000 |
|
Neenah Corp., Sr. Sub. Note, 11.125%, 5/1/2007 |
|
|
1,672,000 |
|
|
1,825,000 |
|
Neenah Corp., Sr. Sub. Note, (Series B), 11.125%, 5/1/2007 |
|
|
1,387,000 |
|
|
2,300,000 |
|
Unifrax Investment Corp., Sr. Note, 10.50%, 11/1/2003 |
|
|
2,150,500 |
|
|
5,225,000 |
|
WESCO Distribution, Inc., Sr. Sub. Note, 9.125%, 6/1/2008 |
|
|
4,911,500 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
29,340,000 |
|
|
||||||
|
|
|
|
Leisure & Entertainment--1.8% |
|
|
|
|
|
6,109,000 |
3, 4 |
AMF Bowling Worldwide, Inc., Sr. Sub. Disc. Note, 0/12.25%, 3/15/2006 |
|
|
1,130,165 |
|
|
100,000 |
4 |
AMF Bowling Worldwide, Inc., Sr. Sub. Note, 10.875%, 3/15/2006 |
|
|
21,500 |
|
|
15,025,000 |
3 |
Premier Parks, Inc., Sr. Disc. Note, 0/10.00%, 4/1/2008 |
|
|
10,217,000 |
|
|
600,000 |
|
Premier Parks, Inc., Sr. Note, 9.25%, 4/1/2006 |
|
|
567,000 |
|
|
6,450,000 |
|
Regal Cinemas, Inc., Sr. Sub. Note, 9.50%, 6/1/2008 |
|
|
612,750 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
12,548,415 |
|
|
||||||
|
|
|
|
Machinery & Equipment--2.3% |
|
|
|
|
|
5,525,000 |
1, 4 |
Clark Material Handling Corp., Sr. Note, 10.75%, 11/15/2006 |
|
|
856,375 |
|
|
1,000,000 |
|
Columbus McKinnon Corp., Sr. Sub. Note, 8.50%, 4/1/2008 |
|
|
885,000 |
|
|
2,775,000 |
|
Fairchild Corp., Sr. Sub. Note, 10.75%, 4/15/2009 |
|
|
2,206,125 |
|
|
2,200,000 |
|
National Equipment Services, Inc., Sr. Sub. Note, 10.00%, 11/30/2004 |
|
|
1,837,000 |
|
|
1,250,000 |
|
NationsRent, Inc., Company Guarantee, 10.375%, 12/15/2008 |
|
|
981,250 |
|
|
6,000,000 |
|
United Rentals, Inc., Company Guarantee, 9.25%, 1/15/2009 |
|
|
5,640,000 |
|
|
1,700,000 |
|
United Rentals, Inc., Company Guarantee, (Series B), 9.00%, 4/1/2009 |
|
|
1,581,000 |
|
|
2,000,000 |
|
WEC Co., Sr. Note, 12.00%, 7/15/2009 |
|
|
1,510,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
15,496,750 |
|
|
||||||
|
|
|
|
Metals & Mining--0.2% |
|
|
|
|
|
3,525,000 |
1, 2 |
AEI Holding Co., Inc., Sr. Note, 10.50%, 12/15/2005 |
|
|
616,875 |
|
|
5,900,000 |
1, 2 |
AEI Resources, Inc., Sr. Sub. Note, 11.50%, 12/15/2006 |
|
|
442,500 |
|
|
700,000 |
|
Murrin Murrin Holdings Pty Ltd., Sr. Secd. Note, 9.375%, 8/31/2007 |
|
|
605,500 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
1,664,875 |
|
|
||||||
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
CORPORATE BONDS--continued |
|
|
|
|
|
|
|
Oil & Gas--2.2% |
|
|
|
|
$ |
5,250,000 |
|
Continental Resources, Inc., Sr. Sub. Note, 10.25%, 8/1/2008 |
|
$ |
4,751,250 |
|
|
2,075,000 |
|
DI Industries, Inc., Sr. Note, 8.875%, 7/1/2007 |
|
|
2,012,750 |
|
|
1,100,000 |
|
Forest Oil Corp., Sr. Sub. Note, 10.50%, 1/15/2006 |
|
|
1,146,750 |
|
|
2,250,000 |
|
Pogo Producing Co., Sr. Sub. Note, 8.75%, 5/15/2007 |
|
|
2,148,750 |
|
|
3,550,000 |
|
R&B Falcon Corp., Sr. Note, 12.25%, 3/15/2006 |
|
|
4,206,750 |
|
|
1,000,000 |
|
Triton Energy Corp., Sr. Note, 9.25%, 4/15/2005 |
|
|
1,020,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
15,286,250 |
|
|
||||||
|
|
|
|
Printing & Publishing--1.0% |
|
|
|
|
|
1,200,000 |
|
Garden State Newspapers, Inc., Sr. Sub. Note, 8.75%, 10/1/2009 |
|
|
1,110,000 |
|
|
4,425,000 |
|
K-III Communications Corp., Company Guarantee, (Series B), 8.50%, 2/1/2006 |
|
|
4,248,000 |
|
|
1,500,000 |
1, 2 |
Ziff Davis Media, Inc., Sr. Sub. Note, 12.00%, 7/15/2010 |
|
|
1,560,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
6,918,000 |
|
|
||||||
|
|
|
|
Services--2.9% |
|
|
|
|
|
2,057,000 |
|
Coinmach Corp., Sr. Note, 11.75%, 11/15/2005 |
|
|
2,077,570 |
|
|
9,775,000 |
3 |
Crown Castle International Corp., Sr. Disc. Note, 0/10.375%, 5/15/2011 |
|
|
6,402,625 |
|
|
750,000 |
3 |
Crown Castle International Corp., Sr. Disc. Note, 0/11.25%, 8/1/2011 |
|
|
498,750 |
|
|
1,125,000 |
|
Crown Castle International Corp., Sr. Note, 10.75%, 8/1/2011 |
|
|
1,181,250 |
|
|
1,150,000 |
|
Metricom, Inc., Company Guarantee, 13.00%, 2/15/2010 |
|
|
782,000 |
|
|
2,175,000 |
1, 2 |
Orius Capital Corp., Sr. Sub. Note, 12.75%, 2/1/2010 |
|
|
2,251,125 |
|
|
2,450,000 |
|
SITEL Corp., Sr. Sub. Note, 9.25%, 3/15/2006 |
|
|
2,296,875 |
|
|
3,100,000 |
3 |
SpectraSite Holdings, Inc., Sr. Disc. Note, 0/12.875%, 3/15/2010 |
|
|
1,767,000 |
|
|
2,300,000 |
|
URS Corp., Sr. Sub. Note, 12.25%, 5/1/2009 |
|
|
2,334,500 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
19,591,695 |
|
|
||||||
|
|
|
|
Steel--0.2% |
|
|
|
|
|
1,275,000 |
|
Ryerson Tull, Inc., Sr. Note, 9.125%, 7/15/2006 |
|
|
1,216,503 |
|
|
||||||
|
|
|
|
Surface Transportation--2.4% |
|
|
|
|
|
2,050,000 |
|
Allied Holdings, Inc., Sr. Note, 8.625%, 10/1/2007 |
|
|
1,783,500 |
|
|
4,950,000 |
1, 4 |
AmeriTruck Distribution Corp., Sr. Sub. Note, 12.25%, 11/15/2005 |
|
|
74,250 |
|
|
2,875,000 |
|
Gearbulk Holding Ltd., Sr. Note, 11.25%, 12/1/2004 |
|
|
2,910,937 |
|
|
1,850,000 |
|
Railworks Corp., Company Guarantee, 11.50%, 4/15/2009 |
|
|
1,646,500 |
|
|
8,300,000 |
|
Stena AB, Sr. Note, 10.50%, 12/15/2005 |
|
|
8,092,500 |
|
|
2,500,000 |
|
Stena Line AB, Sr. Note, 10.625%, 6/1/2008 |
|
|
1,387,500 |
|
|
3,125,000 |
|
The Holt Group, Inc., Company Guarantee, 9.75%, 1/15/2006 |
|
|
453,125 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
16,348,312 |
|
|
||||||
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
CORPORATE BONDS--continued |
|
|
|
|
|
|
|
Telecommunications & Cellular--23.9% |
|
|
|
|
$ |
2,750,000 |
3 |
AirGate PCS, Inc., Sr. Sub. Note, 0/13.50%, 10/1/2009 |
|
$ |
1,753,125 |
|
|
1,400,000 |
3 |
Alamosa PCS Holdings, Inc., 0/12.875%, 2/15/2010 |
|
|
805,000 |
|
|
2,000,000 |
3 |
Call-Net Enterprises, Inc., Sr. Disc. Note, 0/10.80%, 5/15/2009 |
|
|
710,000 |
|
|
5,625,000 |
3 |
Call-Net Enterprises, Inc., Sr. Disc. Note, 0/8.94%, 8/15/2008 |
|
|
2,082,994 |
|
|
8,250,000 |
3 |
Call-Net Enterprises, Inc., Sr. Disc. Note, 0/9.27%, 8/15/2007 |
|
|
3,761,257 |
|
|
2,000,000 |
3 |
Dolphin Telecom PLC, Sr. Disc. Note, 0/14.00%, 5/15/2009 |
|
|
410,000 |
|
|
1,625,000 |
3 |
E.Spire Communications, Inc., Sr. Disc. Note, 0/12.75%, 4/1/2006 |
|
|
654,062 |
|
|
10,200,000 |
|
Global Crossing Holdings Ltd., Company Guarantee, 9.50%, 11/15/2009 |
|
|
10,251,000 |
|
|
7,650,000 |
|
Hermes Europe Railtel B.V., Sr. Note, 11.50%, 8/15/2007 |
|
|
5,240,250 |
|
|
3,275,000 |
3 |
Intermedia Communications, Inc., Sr. Disc. Note, 0/11.25%, 7/15/2007 |
|
|
2,243,375 |
|
|
10,925,000 |
3 |
Intermedia Communications, Inc., Sr. Disc. Note, 0/12.50%, 5/15/2006 |
|
|
9,450,125 |
|
|
2,000,000 |
3 |
Intermedia Communications, Inc., Sr. Disc. Note, (Series B), 0/12.25%, 3/1/2009 |
|
|
1,010,000 |
|
|
16,450,000 |
3 |
Level 3 Communications, Inc., Sr. Disc. Note, 0/10.50%, 12/1/2008 |
|
|
10,075,625 |
|
|
2,825,000 |
|
Level 3 Communications, Inc., Sr. Note, 9.125%, 5/1/2008 |
|
|
2,546,031 |
|
|
12,575,000 |
3 |
McLeodUSA, Inc., Sr. Disc. Note, 0/10.50%, 3/1/2007 |
|
|
10,563,000 |
|
|
1,500,000 |
|
McLeodUSA, Inc., Sr. Note, 8.375%, 3/15/2008 |
|
|
1,372,500 |
|
|
1,125,000 |
|
McLeodUSA, Inc., Sr. Note, 9.25%, 7/15/2007 |
|
|
1,091,250 |
|
|
2,725,000 |
|
Metromedia Fiber Network, Inc., Sr. Note, 10.00%, 12/15/2009 |
|
|
2,697,750 |
|
|
6,200,000 |
3 |
Millicom International Cellular S. A., Sr. Disc. Note, 0/13.50%, 6/1/2006 |
|
|
5,549,000 |
|
|
1,550,000 |
3 |
NEXTEL Communications, Inc., Sr. Disc. Note, 0/9.95%, 2/15/2008 |
|
|
1,185,750 |
|
|
11,550,000 |
|
NEXTEL Communications, Inc., Sr. Note, 9.375%, 11/15/2009 |
|
|
11,376,750 |
|
|
3,500,000 |
3 |
Nextel International, Inc., Sr. Disc. Note, 0/12.125%, 4/15/2008 |
|
|
2,294,040 |
|
|
2,113,000 |
3 |
Nextel Partners, Inc., Sr. Disc. Note, 0/14.00%, 2/1/2009 |
|
|
1,489,665 |
|
|
6,300,000 |
3 |
NEXTLINK Communications, Inc., Sr. Disc. Note, 0/12.125%, 12/1/2009 |
|
|
3,433,500 |
|
|
3,400,000 |
3 |
NEXTLINK Communications, Inc., Sr. Disc. Note, 0/12.25%, 6/1/2009 |
|
|
2,040,000 |
|
|
6,000,000 |
3 |
NEXTLINK Communications, Inc., Sr. Disc. Note, 0/9.45%, 4/15/2008 |
|
|
3,765,000 |
|
|
3,850,000 |
|
NEXTLINK Communications, Inc., Sr. Note, 10.75%, 6/1/2009 |
|
|
3,734,500 |
|
|
3,000,000 |
|
NEXTLINK Communications, Inc., Sr. Note, 9.00%, 3/15/2008 |
|
|
2,692,500 |
|
|
1,600,000 |
|
Northpoint Communications Group, Inc., Sr. Note, 12.875%, 2/15/2010 |
|
|
1,560,000 |
|
|
3,400,000 |
|
PsiNet, Inc., Sr. Note, 10.00%, 2/15/2005 |
|
|
2,941,000 |
|
|
2,775,000 |
|
PsiNet, Inc., Sr. Note, 11.00%, 8/1/2009 |
|
|
2,400,375 |
|
|
2,175,000 |
|
PsiNet, Inc., Sr. Note, 11.50%, 11/1/2008 |
|
|
1,930,313 |
|
|
3,000,000 |
3 |
Qwest Communications International, Inc., Sr. Disc. Note, 0/8.29%, 2/1/2008 |
|
|
2,461,380 |
|
|
2,000,000 |
|
Rhythms NetConnections, Inc., Sr. Note, 14.00%, 2/15/2010 |
|
|
1,310,000 |
|
|
4,200,000 |
|
Rogers Cantel Mobile, Inc., Sr. Sub. Note, 8.80%, 10/1/2007 |
|
|
4,242,000 |
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
CORPORATE BONDS--continued |
|
|
|
|
|
|
|
Telecommunications & Cellular--continued |
|
|
|
|
$ |
3,675,000 |
3 |
Telesystem International Wireless, Inc., Sr. Disc. Note, 0/10.50%, 11/1/2007 |
|
$ |
2,076,375 |
|
|
6,350,000 |
3 |
Telesystem International Wireless, Inc., Sr. Disc. Note, 0/13.25%, 6/30/2007 |
|
|
4,222,750 |
|
|
4,575,000 |
3 |
Teligent AB, Sr. Disc. Note, 0/11.50%, 3/1/2008 |
|
|
1,761,375 |
|
|
4,250,000 |
|
Teligent AB, Sr. Note, 11.50%, 12/1/2007 |
|
|
2,698,750 |
|
|
1,000,000 |
3 |
Tritel PCS, Inc., Company Guarantee, 0/12.75%, 5/15/2009 |
|
|
705,000 |
|
|
8,500,000 |
3 |
Triton PCS, Inc., Sr. Disc. Note, 0/11.00%, 5/1/2008 |
|
|
6,460,000 |
|
|
3,000,000 |
|
USA Mobile Communications, Inc., Sr. Note, 9.50%, 2/1/2004 |
|
|
2,355,000 |
|
|
1,100,000 |
|
Verio, Inc., Sr. Note, 10.625%, 11/15/2009 |
|
|
1,305,414 |
|
|
2,650,000 |
|
Verio, Inc., Sr. Note, 11.25%, 12/1/2008 |
|
|
3,132,062 |
|
|
1,000,000 |
|
Viatel, Inc., Sr. Note, 11.50%, 3/15/2009 |
|
|
575,000 |
|
|
2,275,000 |
3 |
Viatel, Inc., Unit, 0/12.50%, 4/15/2008 |
|
|
784,875 |
|
|
5,750,000 |
|
Viatel, Inc., Unit, 11.25%, 4/15/2008 |
|
|
3,306,250 |
|
|
7,500,000 |
|
VoiceStream Wireless Corp., Sr. Disc. Note, 0/11.875%, 11/15/2009 |
|
|
5,437,500 |
|
|
2,000,000 |
|
VoiceStream Wireless Corp., Sr. Note, 10.375%, 11/15/2009 |
|
|
2,170,000 |
|
|
7,009,000 |
1, 2, 3 |
WinStar Communications, Inc., Sr. Sub. Defd. Deb., 0/14.75%, 4/15/2010 |
|
|
2,856,168 |
|
|
2,392,000 |
1, 2 |
WinStar Communications, Inc., Sr. Sub. Defd. Deb., 12.75%, 4/15/2010 |
|
|
2,069,080 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
163,038,716 |
|
|
||||||
|
|
|
|
Utilities--0.1% |
|
|
|
|
|
500,000 |
1, 2 |
AES Drax Energy Ltd., Sr. Secd. Note, 11.50%, 8/30/2010 |
|
|
524,120 |
|
|
||||||
|
|
|
|
TOTAL CORPORATE BONDS (IDENTIFIED COST $748,857,224) |
|
|
617,310,154 |
|
|
||||||
|
|
|
|
COMMON STOCKS/WARRANTS--0.4% |
|
|
|
|
|
|
|
Broadcast Radio & TV--0.0% |
|
|
|
|
|
2,200 |
4 |
XM Satellite Radio, Inc., Warrants |
|
|
287,100 |
|
|
||||||
|
|
|
|
Business Equipment & Services--0.0% |
|
|
|
|
|
3,725 |
4 |
Electronic Retailing Systems International, Inc., Warrants |
|
|
3,725 |
|
|
||||||
|
|
|
|
Cable Television--0.0% |
|
|
|
|
|
2,525 |
4 |
Australis Holdings Property Ltd., Warrants |
|
|
0 |
|
|
68 |
4 |
CS Wireless Systems, Inc. |
|
|
9 |
|
|
9,825 |
4 |
UIH Australia/Pacific, Warrants |
|
|
297,206 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
297,215 |
|
|
||||||
|
|
|
|
Chemicals & Plastics--0.0% |
|
|
|
|
|
4,675 |
4 |
Sterling Chemicals Holdings, Inc., Warrants |
|
|
43,244 |
|
|
||||||
|
|
|
|
Metals & Mining--0.0% |
|
|
|
|
|
138,395 |
1, 4 |
Royal Oak Mines, Inc. |
|
|
692 |
|
|
||||||
|
Shares |
|
|
|
|
Value |
|
|
|
|
|
COMMON STOCKS/WARRANTS--continued |
|
|
|
|
|
|
|
Oil & Gas--0.2% |
|
|
|
|
|
2,400 |
4 |
R&B Falcon Corp., Warrants |
|
$ |
1,601,832 |
|
|
||||||
|
|
|
|
Printing & Publishing--0.1% |
|
|
|
|
|
5,350 |
4 |
Medianews Group, Inc. |
|
|
802,500 |
|
|
||||||
|
|
|
|
Services--0.0% |
|
|
|
|
|
1,750 |
4 |
Metricom, Inc., Warrants |
|
|
52,938 |
|
|
||||||
|
|
|
|
Steel--0.0% |
|
|
|
|
|
1,800 |
4 |
Bar Technologies, Inc., Warrants |
|
|
18 |
|
|
||||||
|
|
|
|
Telecommunications & Cellular--0.1% |
|
|
|
|
|
4,200 |
4 |
MetroNet Communications Corp., Warrants |
|
|
441,000 |
|
|
||||||
|
|
|
|
TOTAL COMMON STOCKS/WARRANTS (IDENTIFIED COST $1,482,886) |
|
|
3,530,264 |
|
|
||||||
|
|
|
|
PREFERRED STOCKS--5.1% |
|
|
|
|
|
|
|
Banking--0.2% |
|
|
|
|
|
57,000 |
|
California Federal Preferred Capital Corp., REIT Perpetual Pfd. Stock, (Series A), $2.28 |
|
|
1,296,750 |
|
|
||||||
|
|
|
|
Broadcast Radio & TV--1.1% |
|
|
|
|
|
3,375 |
|
Benedek Communications Corp., Sr. Exchangeable PIK |
|
|
1,873,125 |
|
|
54,825 |
|
Sinclair Broadcast Group, Inc., Cumulative Pfd., $11.63 |
|
|
5,290,613 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
7,163,738 |
|
|
||||||
|
|
|
|
Business Equipment & Services--0.0% |
|
|
|
|
|
1,949 |
|
Electronic Retailing Systems International, Inc., Conv. Pfd. |
|
|
19 |
|
|
||||||
|
|
|
|
Cable Television--0.9% |
|
|
|
|
|
5,738 |
|
Pegasus Communications Corp., Cumulative PIK Pfd., (Series A), 12.75% |
|
|
6,053,451 |
|
|
||||||
|
|
|
|
Food Services--0.0% |
|
|
|
|
|
30,307 |
4 |
Nebco Evans Holding Co., Exchangeable Pfd. Stock |
|
|
18,942 |
|
|
||||||
|
|
|
|
Health Care--0.1% |
|
|
|
|
|
13,224 |
|
River Holding Corp., Sr. Exchangeable PIK |
|
|
932,292 |
|
|
||||||
|
|
|
|
Industrial Products & Equipment--0.3% |
|
|
|
|
|
2,000 |
|
Fairfield Manufacturing Co., Inc., Cumulative Exchangeable Pfd. Stock |
|
|
1,710,000 |
|
|
106 |
1, 2 |
International Utility Structures, Inc., Unit |
|
|
72,345 |
|
|
300 |
1, 2 |
International Utility Structures, Inc., Unit, $13.00 |
|
|
231,750 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
2,014,095 |
|
|
||||||
|
|
|
|
Oil & Gas--0.9% |
|
|
|
|
|
4,959 |
|
R&B Falcon Corp., PIK Pfd., 13.875% |
|
|
6,173,849 |
|
|
||||||
|
|
|
|
Printing & Publishing--0.7% |
|
|
|
|
|
55,100 |
|
Primedia, Inc., Exchangeable Pfd. Stock, (Series H), $2.16 |
|
|
4,655,950 |
|
|
||||||
|
Shares |
|
|
|
|
Value |
|
|
|
|
|
PREFERRED STOCKS--continued |
|
|
|
|
|
|
|
Telecommunications & Cellular--0.9% |
|
|
|
|
|
4,241 |
|
NEXTEL Communications, Inc., Cumulative PIK Pfd., (Series D), 13.00% |
|
$ |
4,516,665 |
|
|
1,711 |
|
NEXTEL Communications, Inc., Exchangeable Pfd. Stock, (Series E) |
|
|
1,659,666 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
6,176,331 |
|
|
||||||
|
|
|
|
TOTAL PREFERRED STOCKS (IDENTIFIED COST $38,732,181) |
|
|
34,485,417 |
|
|
||||||
|
|
|
|
MUTUAL FUNDS--3.1%5 |
|
|
|
|
|
20,844,884 |
|
Prime Value Obligations Fund, (Series IS) (at net asset value) |
|
|
20,844,884 |
|
|
||||||
|
|
|
|
TOTAL INVESTMENTS (IDENTIFIED COST $809,917,175)6 |
|
$ |
676,170,719 |
|
|
||||||
1 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. At August 31, 2000, these securities amounted to $35,177,405 which represents 5.2% of net assets. Included in these amounts, securities which have been deemed liquid amounted to $33,273,588 which represents 4.9% of net assets.
2 Denotes a restricted security that has been deemed liquid by criteria approved by the fund's Board of Trustees.
3 Denotes a Zero Coupon bond with effective rate at time of purchase.
4 Non-income producing security.
5 Pursuant to an exemptive order, the fund may invest in Prime Value Obligations Fund which is managed by Federated Investment Management Company, the fund's adviser. Federated Investment Management Company has agreed to reimburse certain investment advisory fees as a result of these transactions.
6 The cost of investments for federal tax purposes amounts to $809,917,175. The net unrealized depreciation of investments on a federal tax basis amounts to $133,746,456 which is comprised of $12,609,514 appreciation and $146,355,970 depreciation at August 31, 2000.
Note: The categories of investments are shown as a percentage of net assets ($681,527,896) at August 31, 2000.
The following acronyms are used throughout this portfolio:
|
GTD |
--Guaranty |
|
PIK |
--Payment in Kind |
|
REIT |
--Real Estate Investment Trust |
See Notes which are an integral part of the Financial Statements
AUGUST 31, 2000 (UNAUDITED)
|
Assets: |
|
|
|
|
|
|
|
|
Total investments in securities, at value (identified and tax cost $809,917,175) |
|
|
|
|
$ |
676,170,719 |
|
|
Income receivable |
|
|
|
|
|
14,516,048 |
|
|
Receivable for investments sold |
|
|
|
|
|
231 |
|
|
Receivable for shares sold |
|
|
|
|
|
537,207 |
|
|
|
|||||||
|
TOTAL ASSETS |
|
|
|
|
|
691,224,205 |
|
|
|
|||||||
|
Liabilities: |
|
|
|
|
|
|
|
|
Payable for investments purchased |
|
$ |
944,356 |
|
|
|
|
|
Payable for shares redeemed |
|
|
2,402,882 |
|
|
|
|
|
Income distribution payable |
|
|
6,181,964 |
|
|
|
|
|
Accrued expenses |
|
|
167,107 |
|
|
|
|
|
|
|||||||
|
TOTAL LIABILITIES |
|
|
|
|
|
9,696,309 |
|
|
|
|||||||
|
Net assets for 89,639,025 shares outstanding |
|
|
|
|
$ |
681,527,896 |
|
|
|
|||||||
|
Net Assets Consist of: |
|
|
|
|
|
|
|
|
Paid in capital |
|
|
|
|
$ |
861,459,135 |
|
|
Net unrealized depreciation of investments |
|
|
|
|
|
(133,746,456 |
) |
|
Accumulated net realized loss on investments |
|
|
|
|
|
(45,464,716 |
) |
|
Distributions in excess of net investment income |
|
|
|
|
|
(720,067 |
) |
|
|
|||||||
|
TOTAL NET ASSETS |
|
|
|
|
$ |
681,527,896 |
|
|
|
|||||||
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share: |
|
|
|
|
|
|
|
|
$681,527,896 ÷ 89,639,025 shares outstanding |
|
|
|
|
|
$7.60 |
|
|
|
|||||||
See Notes which are an integral part of the Financial Statements
SIX MONTHS ENDED AUGUST 31, 2000 (UNAUDITED)
|
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends |
|
|
|
|
|
|
|
|
|
$ |
2,122,838 |
|
|
Interest (net of foreign taxes withheld of $3,646) |
|
|
|
|
|
|
|
|
|
|
39,607,995 |
|
|
|
||||||||||||
|
TOTAL INCOME |
|
|
|
|
|
|
|
|
|
|
41,730,833 |
|
|
|
||||||||||||
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment adviser fee |
|
|
|
|
|
$ |
2,701,854 |
|
|
|
|
|
|
Administrative personnel and services fee |
|
|
|
|
|
|
271,254 |
|
|
|
|
|
|
Custodian fees |
|
|
|
|
|
|
20,533 |
|
|
|
|
|
|
Transfer and dividend disbursing agent fees and expenses |
|
|
|
|
|
|
99,064 |
|
|
|
|
|
|
Directors'/Trustees' fees |
|
|
|
|
|
|
7,215 |
|
|
|
|
|
|
Auditing fees |
|
|
|
|
|
|
6,854 |
|
|
|
|
|
|
Legal fees |
|
|
|
|
|
|
1,804 |
|
|
|
|
|
|
Portfolio accounting fees |
|
|
|
|
|
|
48,991 |
|
|
|
|
|
|
Shareholder services fee |
|
|
|
|
|
|
900,577 |
|
|
|
|
|
|
Share registration costs |
|
|
|
|
|
|
13,708 |
|
|
|
|
|
|
Printing and postage |
|
|
|
|
|
|
23,448 |
|
|
|
|
|
|
Insurance premiums |
|
|
|
|
|
|
1,082 |
|
|
|
|
|
|
Miscellaneous |
|
|
|
|
|
|
9,740 |
|
|
|
|
|
|
|
||||||||||||
|
TOTAL EXPENSES |
|
|
|
|
|
|
4,106,124 |
|
|
|
|
|
|
|
||||||||||||
|
Waivers: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Waiver of investment adviser fee |
|
$ |
(744,937 |
) |
|
|
|
|
|
|
|
|
|
Waiver of shareholder services fee |
|
|
(180,116 |
) |
|
|
|
|
|
|
|
|
|
Reimbursement of investment adviser fee |
|
|
(775 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
TOTAL WAIVERS |
|
|
|
|
|
|
(925,828 |
) |
|
|
|
|
|
|
||||||||||||
|
Net expenses |
|
|
|
|
|
|
|
|
|
|
3,180,296 |
|
|
|
||||||||||||
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
38,550,537 |
|
|
|
||||||||||||
|
Realized and Unrealized Loss on Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized loss on investments |
|
|
|
|
|
|
|
|
|
|
(16,376,196 |
) |
|
Net change in unrealized depreciation of investments |
|
|
|
|
|
|
|
|
|
|
(22,345,205 |
) |
|
|
||||||||||||
|
Net realized and unrealized loss on investments |
|
|
|
|
|
|
|
|
|
|
(38,721,401 |
) |
|
|
||||||||||||
|
Change in net assets resulting from operations |
|
|
|
|
|
|
|
|
|
$ |
(170,864 |
) |
|
|
||||||||||||
See Notes which are an integral part of the Financial Statements
|
|
|
|
Six Months |
|
|
|
Year Ended |
|
|
Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
38,550,537 |
|
|
$ |
92,161,908 |
|
|
Net realized gain (loss) on investments ($(16,376,196) and $(22,135,778), respectively, as computed for federal tax purposes) |
|
|
(16,376,196 |
) |
|
|
(22,135,778 |
) |
|
Net change in unrealized depreciation |
|
|
(22,345,205 |
) |
|
|
(74,512,017 |
) |
|
|
||||||||
|
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS |
|
|
(170,864 |
) |
|
|
(4,485,887 |
) |
|
|
||||||||
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
|
(39,092,804 |
) |
|
|
(92,931,635 |
) |
|
|
||||||||
|
Share Transactions: |
|
|
|
|
|
|
|
|
|
Proceeds from sale of shares |
|
|
224,781,978 |
|
|
|
721,761,032 |
|
|
Net asset value of shares issued to shareholders in payment of distributions declared |
|
|
20,022,225 |
|
|
|
60,254,638 |
|
|
Cost of shares redeemed |
|
|
(297,625,067 |
) |
|
|
(980,826,099 |
) |
|
|
||||||||
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
|
|
(52,820,864 |
) |
|
|
(198,810,429 |
) |
|
|
||||||||
|
Change in net assets |
|
|
(92,084,532 |
) |
|
|
(296,227,951 |
) |
|
|
||||||||
|
Net Assets: |
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
773,612,428 |
|
|
|
1,069,840,379 |
|
|
|
||||||||
|
End of period |
|
$ |
681,527,896 |
|
|
$ |
773,612,428 |
|
|
|
||||||||
See Notes which are an integral part of the Financial Statements
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
|
|
|
Six Months |
|
|
Year Ended February 28 or 29, |
|||||||||||||
|
|
|
2000 |
|
|
2000 |
|
|
1999 |
|
|
1998 |
|
|
1997 |
|
|
1996 |
|
|
Net Asset Value, Beginning of Period |
|
$8.03 |
|
|
$8.92 |
|
|
$9.73 |
|
|
$9.41 |
|
|
$9.09 |
|
|
$8.57 |
|
|
Income From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
0.42 |
|
|
0.84 |
|
|
0.83 |
|
|
0.82 |
|
|
0.85 |
|
|
0.85 |
|
|
Net realized and unrealized gain (loss) on Investments |
|
(0.43 |
) |
|
(0.89 |
) |
|
(0.81 |
) |
|
0.32 |
|
|
0.33 |
|
|
0.51 |
|
|
|
||||||||||||||||||
|
TOTAL FROM INVESTMENT OPERATIONS |
|
(0.01 |
) |
|
(0.05 |
) |
|
0.02 |
|
|
1.14 |
|
|
1.18 |
|
|
1.36 |
|
|
|
||||||||||||||||||
|
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
(0.42 |
) |
|
(0.84 |
) |
|
(0.83 |
) |
|
(0.82 |
) |
|
(0.85 |
) |
|
(0.84 |
) |
|
Distributions in excess of net investment income1 |
|
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
(0.01 |
) |
|
-- |
|
|
|
||||||||||||||||||
|
TOTAL DISTRIBUTIONS |
|
(0.42 |
) |
|
(0.84 |
) |
|
(0.83 |
) |
|
(0.82 |
) |
|
(0.86 |
) |
|
(0.84 |
) |
|
|
||||||||||||||||||
|
Net Asset Value, End of Period |
|
$7.60 |
|
|
$8.03 |
|
|
$8.92 |
|
|
$9.73 |
|
|
$9.41 |
|
|
$9.09 |
|
|
|
||||||||||||||||||
|
Total Return2 |
|
(0.02 |
%) |
|
(0.69 |
%) |
|
0.33 |
% |
|
12.74 |
% |
|
13.74 |
% |
|
16.47 |
% |
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Expenses |
|
0.88 |
%3 |
|
0.88 |
% |
|
0.88 |
% |
|
0.88 |
% |
|
0.88 |
% |
|
0.88 |
% |
|
|
||||||||||||||||||
|
Net investment income |
|
10.70 |
%3 |
|
9.67 |
% |
|
9.02 |
% |
|
8.73 |
% |
|
9.45 |
% |
|
9.53 |
% |
|
|
||||||||||||||||||
|
Expense waiver/reimbursement4 |
|
0.26 |
%3 |
|
0.28 |
% |
|
0.26 |
% |
|
0.27 |
% |
|
0.28 |
% |
|
0.30 |
% |
|
|
||||||||||||||||||
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net assets, end of period (000 omitted) |
|
$681,528 |
|
$773,612 |
|
$1,069,840 |
|
$1,199,063 |
|
$938,363 |
|
$673,779 |
|
|||||
|
|
||||||||||||||||||
|
Portfolio turnover |
|
9 |
% |
|
52 |
% |
|
47 |
% |
|
84 |
% |
|
81 |
% |
|
87 |
% |
|
|
||||||||||||||||||
1 Distributions in excess of net investment income for the period ended February 28, 1997, was a result of a certain book and tax timing differences. These distributions did not represent a return of capital for federal income tax purpose.
2 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
AUGUST 31, 2000 (UNAUDITED)
Federated High Yield Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-end management investment company. The Trust's investment objective is to seek high current income by investing primarily in a professionally managed, diversified portfolio of fixed income securities. The Trust's portfolio of investments consists primarily of lower rated corporate debt obligations. These lower rated obligations may be more susceptible to real or perceived adverse economic conditions than investment grade bonds. These lower rated debt obligations are regarded as predominately speculative with respect to each issuer's continuing ability to make interest and principal payments (i.e. the obligations are subject to the risk of default).
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles.
Listed corporate bonds, other fixed income and asset-backed securities, and unlisted securities and private placement securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Listed equity securities are valued at the last sale price reported on a national securities exchange. Investments in other open-end investment companies are valued at net asset value. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value.
It is the policy of the Trust to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Trust to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreements.
The Trust will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Trust's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Trustees (the "Trustees"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Trust could receive less than the repurchase price on the sale of collateral securities. The Trust, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.
Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value. Distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These distributions do not represent a return of capital for federal income tax purposes.
It is the Trust's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.
At February 29, 2000, the Trust, for federal tax purposes, had a capital loss carryforward of $11,330,635, which will reduce the Trust's taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Trust of any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire as follows:
|
Expiration Year |
|
Expiration Amount |
|
2003 |
|
$1,456,604 |
|
|
||
|
2008 |
|
$ 9,874,031 |
|
|
||
Additionally, net capital losses of $16,728,938 attributable to security transactions incurred after October 31, 1999, are treated as arising on March 1, 2000, the first day of the fund's next taxable year.
The Trust may engage in when-issued or delayed delivery transactions. The Trust records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Trust or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Board of Trustees. The Trust will not incur any registration costs upon such resales. The Trust's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined by the Trust's pricing committee.
Additional information on each restricted security held at August 31, 2000 is as follows:
|
Security |
|
Acquisition |
|
Acquisition |
|
Ameritruck Distribution Corp., Sr. Sub. Note |
|
11/15/1995 - 10/22/1997 |
|
$4,935,278 |
|
|
||||
|
Clair Material Handling Corp., Sr. Note |
|
11/22/1996 - 7/21/1997 |
|
$5,716,875 |
|
|
||||
|
Dyersburg Corp., Sr. Sub. Note |
|
8/20/1997 - 11/12/1997 |
|
$3,893,500 |
|
|
||||
|
Glenoit Corp., Sr. Sub. Note |
|
3/26/1997 - 8/19/1997 |
|
$4,646,903 |
|
|
||||
|
Royal Oak Mines, Inc. |
|
2/24/1999 |
|
$ 15,376 |
|
|
||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Investment transactions are accounted for on a trade date basis.
The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in capital stock were as follows:
|
|
|
Six Months |
|
|
Year Ended |
|
|
Shares sold |
|
29,213,450 |
|
|
83,657,351 |
|
|
Shares issued to shareholders in payment of distributions declared |
|
2,610,241 |
|
|
7,074,155 |
|
|
Shares redeemed |
|
(38,556,106 |
) |
|
(114,278,787 |
) |
|
|
||||||
|
NET CHANGE RESULTING FROM SHARE TRANSACTIONS |
|
(6,732,415 |
) |
|
(23,547,281 |
) |
|
|
||||||
Federated Investment Management Company, the Trust's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.75% of the Trust's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.
Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Trust with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.
Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Trust will pay FSSC up to 0.25% of average daily net assets of the Trust shares for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.
FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Trust. The fee paid to FSSC is based on the size, type, and number of accounts and transactions made by shareholders.
FServ maintains the Trust's accounting records for which it receives a fee. The fee is based on the level of the Trust's average daily net assets for the period, plus out-of-pocket expenses.
Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.
Purchases and sales of investments, excluding short-term securities (and in-kind contributions), for the period ended August 31, 2000, were as follows:
|
Purchases |
|
$ |
58,244,041 |
|
|
|||
|
Sales |
|
$ |
120,209,274 |
|
|
|||
Chairman
President
Executive Vice President
Executive Vice President and Secretary
Vice President
Treasurer
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus which contains facts concerning its objective and policies, management fees, expenses and other information.
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
AUGUST 31, 2000
Federated
Federated High Yield Trust
Federated Investors
Funds
5800 Corporate Drive
Pittsburgh, PA
15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated
Securities Corp., Distributor
Cusip 314197104
8092705 (10/00)
Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.
|
|